Despite the strong jobs growth, there is concern that weak wages growth is starting to hurt consumption, reducing the chances of interest rate tightening from the Bank of England that would give a lift to savers.

The government on Tuesday signalled its intention to raise salaries for all public sector workers by more than a 1.0-per cent cap in place during several years of state austerity.

The first to benefit are police officers, who will see their pay increase by 2.0 per cent, and prison officers, who are receiving a 1.7-per cent hike.

But the POA prison officer union branded the move a pay cut in real terms, reflecting a wider frustration at loss of purchasing power in the UK. — AFP